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Strategies & Market Trends : From the Trading Desk -- Ignore unavailable to you. Want to Upgrade?

To: David Wiggins who wrote (4600)	6/29/1999 4:36:00 PM
From: LPS5	Read Replies (1) \| Respond to of 4969

Click on my name, LPS5, and then click on SEND PRIVATE MESSAGE. I don't believe it's something you can turn on or off. In fact, I'm nearly certain of that. ANYWAY...144A stock trades on an OTC basis but is distinctly different from OTC BB stock; for one thing, 144A stock trades largely between control persons and major institutions only. The regular common public usually can't touch it, unless they're control persons, beneficiaries of a private placement, etc. Lots of ADR's trade as 144A stock. Did you sign an offering circular or any other form of document which restricts how and where you can dump the stock? It seems to me that such stock, unless there was a bona fide market for it (and only a major wirehouse could tell you if there was institutional interest for it) could only be transacted in a trade with an interested institutional entity, another control person of the company in question, or - as is often the case - back to the company for a certain assessed liquidating value. I'm also sure that unless there was a sizeable institutional market for it - such stock, being unmarginable, is also not shortable unless as part of a transaction in an overseas account. So, it'd seem that: 1) You'd have to check your offering circular or the corporate minutes/bylaws/corporate charter of the company in question with regard to your obligations in terms of selling restricted stock; 2) Check with a large institution (a Goldman, Merrill, or Morgan Stanley - Knight also makes a lot of markets) to see if a market exists in the 144A stock that you possess; and 3) I'm quite sure that 144A stock - particularly if there's no market in it - is unshortable. Steve - anything to add or correct? LPS5